Fullerton : City Fails to Block Group W Rate Increase

Cable television subscribers face a rate increase on June 1 after a federal judge Friday denied a preliminary injunction sought by the city to halt Group W Cable from raising its rates.

While the city continues its lawsuit with the cable company, the basic service for subscribers will jump from $7.95 to $9.95.

Federal District Judge Irving Hill said the cable company could go ahead with the rate increase until the case reaches trial. Group W officials said they would give customers rebates if the rate hike is later found illegal by the courts, said William Marticorena, an attorney for the city. Fullerton officials sued the company for what they said was “a direct and blatant violation” of their contract. A city franchise ordinance regulates the rates. Group W can’t increase its fees without the City Council’s approval, Marticorena said.

Jim Bray, general manager of the Group W’s franchise, said a state deregulatory law overrides the city’s ordinance. Marticorena argued that the cable company agreed to waive its right to the state bill.

By December, 1986, the issue may be a moot point, Bray said. Companies across the nation will be deregulated under the Telecommunications Act of 1984.

Until then, however, “what they’re doing is illegal,” Marticorena said.

Bray disagreed and said that the increase slated for June 1 was the first in four years. He said the new basic $9.95 rate is lower than the average $11.58 rate across the county. For their monthly fee, Fullerton residents get 54 channels compared to the county’s average 33-channel capacity, he said.